Starting your Cryptocurrency Investment

Starting to invest in cryptocurrency is not a choice that faint hearted people may really wish to make. At the moment, knowledge and information about the future of the virtual currencies remain mixed.

On one hand, those in support make it appear as the best investment in the money markets while critics pour cold water on its viability altogether. Be that as it may, it is assumed that at the point when anyone makes the decision to try a hand in crypto, he or she has considered the possible risks and rewards. But still, most people often get attracted merely by the fact that people really rake in fortunes from trading in crypto.

Probably you know a friend, relative, neighbor, or colleague at work who got into cryptocurrency trading way back in time. He has made a lot of money from it and is even considering changing his Bitcoin investments to other crypto such as Ethereum just to get more profits. Such stories will send you thinking about also starting that investment journey. What maybe you are missing is the pieces of details to get you started. Here it is;

Beginners guide to crypto investing

As a starting point, it is a good idea that one understands what cryptocurrency investing is all about . Yes, you are in a hurry to make the profits and there is all this fuzzy information out there. When now putting your money into crypto trading, it requires you to take some time and read a bit about crypto. It will save you a great deal when you have the necessary information.

So, to make your cryptocurrency investment journey a lot less treacherous, you can observe these points. It is not a must that you follow them in any order or do all of them. Let your instincts guide you because, the game of investing in crypto is not for jokers.

1. Take your time to know more about cryptocurrency investing

Before you put your money into anything, leave alone crypto investing, it is always a good idea that you invest in knowing more about it. You can not be so trusting and naive to believe that somehow things will work in your favor.

To be safe, ask yourself, what may go wrong and if they actually go haywire, what should I do to avoid losing money? Read more, read daily. Cryptocurrency information keep coming out every other day. It is all a learning experience as the markets and use of crypto expand.

Do not just take your friends’ word about crypto investing as the indisputable truth. Everyone will tend to tell you just the much they know or think about the trade. So it is upon you to read more and make informed personal choices. But do not ignore talking to and picking the mind of veteran crypto investors. These are people who have literally grown with cryptocurrency and understand them beyond textbook knowledge.

2. Select which cryptocurrency to invest in

You must first decide which one to go with out of the many available cryptocurrencies including bitcoin, Ethereum, Dogecoin etc. Making a choice at this point does not necessarily mean that it is completely impossible to reinvest in other coins. For your information, it is possible to exchange between the cryptos. But at first, you decide which one best suits your interests.

So far, Bitcoin, because of its age has a lot of information available about it. Because investing in crypto all depends on speculation and a dynamic play out of demand and supply, the more information available about a crypto, the better. We have also witnessed the evolution in the use and reception of bitcoin from its introduction more than a decade ago. The other cryptos are also coming up so well and Coinbase is gaining much popularity as well.

3. Identify a cryptocurrency exchange

At the point of making a decision to enter into cryptocurrency trading and investment, you obviously have money in your bank account or cash. In the financial language, this money held in normal bank accounts or cash is called fiat currency. So, you need to first use your fiat currency to exchange with the virtual currency of choice. Difficult? No, here is how it is done…

There are what we call Cryptocurrency Exchange that deals in allowing people to access the various virtual currencies on offer in the market. In simple everyday life, the Cryptocurrency Exchange re just brokers between you as an investor and the blockchain that supports crypto trading.

After identifying an exchange, it is now time to create an account with them. All this is done online and you will not need to make any physical visits anywhere. The cryptocurrency exchanges have very interactive and user friendly interphases which should be easy for you to understand. Proceed and create an account with them. As you grow into crypto trading, you will understand that an online account created with crypto exchange is called a digital wallet.

Choose your cryptocurrency exchange from this list . Sorry, this is just but a few known ones at the moment. Who knows whether others are on the pipe and will emerge tomorrow?

• Coinbase
• Binance
• Kraken
• Gemini
• GDAx
• Bitfinex

Buy your first cryptocurrency

After you have created an account with any of the mentioned cryptocurrency exchanges, you have really proven your determination to invest. You know what, it’s only a few steps now before you can get your first virtual currency.

Because you had already read more about the various cryptocurrency offerings in the first stage, it should not trouble you to choose at this point. Identify your desired crypto investment option and go with it. The crypto exchange will show you how much of selected crypto can be bought with whatever amount you have. If it were in gambling, this phase would be similar to deciding your stake.

Something about cryptocurrencies that make them highly unique is their high divisibility. A single bitcoin can be divided into up to 8 units which means that you will always have a chance of buying a fraction of the bitcoin . This is the same case with all other cryptocurrencies.

5. Hold the cryptocurrencies in your digital wallet

Once you have completed the process of buying your cryptocurrencies, you are only a heartbeat away from stating a very interesting investment journey. Your crypto will be deposited and held in your digital wallet. The digital wallet is hosted by your crypto exchange. From here, you can always access the crypto, trade I them and get your margins.

Tips when trading in cryptocurrency

Now you have your much awaited cryptocurrency well tucked in the digital wallet. Maybe if it was a matter of taking pride, you would tell your friends, “c’mon, I am not a million dollar rich but 100000 bitcoins rich” or something like that. You understand how boastful one can be when it is now evident that they have a crypto with them.

Amidst your sense of happiness for now owning crypto, it is time to remember that those currency being in the wallet alone does not help with anything. You have to make the money available for trade. After making them available, it is then necessary to keep monitoring the behavior of graphs. Key to crypto investment is that they rise and fall in value every other minute. So be on the watch out at all times.